UK’s mounting debts unsustainable if sweeping tax cuts go ahead

[Eldorado]

Britain’s mounting debts will be unsustainable if the government presses ahead with sweeping tax cuts in a mini-budget on Friday, according to a taxation and spending watchdog, the Institute for Fiscal Studies.

Fuelling concerns that the UK’s precarious financial position will spark a run on the pound, the chancellor, Kwasi Kwarteng, is expected to reverse a hike in national insurance payments and cut corporation tax at a cost of £30bn to the Treasury.

Kwarteng, who will announce a review of his fiscal rules to allow the government to borrow more, is also expected to giveaway billions of pounds by cutting stamp duty on house purchases and confirm a multibillion rise in the defence budget to support the war in Ukraine and boost growth.

These measures will be in addition to a freeze on energy prices for consumers and businesses that could cost more than £150bn over two years.

https://www.msn.com/en-gb/money/news/uk-s-mounting-debts-unsustainable-if-sweeping-tax-cuts-go-ahead-warns-ifs/ar-AA125RRp?

[acute]

It's absolutely crazy to plan tax cuts for your rich pals, when you've got the debt from Brexit, Covid, lockdown, furlough, energy bill support, cost-of-living payments, and more to come.

These ******* Tories are morally corrupt, but they always have been.

[Duke Wellington]

3 hours ago, Eldorado said:

Britain’s mounting debts will be unsustainable if the government presses ahead with sweeping tax cuts in a mini-budget on Friday, according to a taxation and spending watchdog, the Institute for Fiscal Studies.

Fuelling concerns that the UK’s precarious financial position will spark a run on the pound, the chancellor, Kwasi Kwarteng, is expected to reverse a hike in national insurance payments and cut corporation tax at a cost of £30bn to the Treasury.

Kwarteng, who will announce a review of his fiscal rules to allow the government to borrow more, is also expected to giveaway billions of pounds by cutting stamp duty on house purchases and confirm a multibillion rise in the defence budget to support the war in Ukraine and boost growth.

These measures will be in addition to a freeze on energy prices for consumers and businesses that could cost more than £150bn over two years.

https://www.msn.com/en-gb/money/news/uk-s-mounting-debts-unsustainable-if-sweeping-tax-cuts-go-ahead-warns-ifs/ar-AA125RRp?

What the socialists propose is wrong, but so is the PMs approach.

The inflation is caused by a lack of supply and high demand. That means the supply needs to be increased (send NATO into Ukraine to end the war quickly so sanctions can be lifted) and take steps to cut demand.

Lowering the price of energy does not cut demand, its raises demand and therefore inflation. Tax cuts raise demand and inflation too. What is needed is a national conversation asking the worker drones to simply buy themselves a couple of thick jumpers this winter, for the overall good and prosperity of the hive.

That means less fuel being used, and no handouts to make fuel cheaper are needed. Inflation will then come down.

[Duke Wellington]

6 minutes ago, acute said:

It's absolutely crazy to plan tax cuts for your rich pals, when you've got the debt from Brexit, Covid, lockdown, furlough, energy bill support, cost-of-living payments, and more to come.

These ******* Tories are morally corrupt, but they always have been.

Well, I have plenty of money, so I`m not losing out.

[itsnotoutthere]

11 hours ago, acute said:

It's absolutely crazy to plan tax cuts for your rich pals, when you've got the debt from Brexit, Covid, lockdown, furlough, energy bill support, cost-of-living payments, and more to come.

These ******* Tories are morally corrupt, but they always have been.

https://web.archive.org/web/20181115015545/https://www.politicalite.com/corbyn/labour/labours-cover-up-gordon-browns-government-urged-police-not-to-investigate-muslim-grooming-gangs/